New Zealand Credit Contracts and Consumer Finance Act 2003
Part 1A: Lender responsibilities – New Zealand Credit Contracts and Consumer Finance Act 2003

New Zealand Credit Contracts and Consumer Finance Act 2003 9C: Comply with the lender responsibility principles: care, diligence and skill, affordability and suitability inquiries, informed decisions, reasonable and ethical treatment

What does 9C require?

Every lender must at all times bring a responsible lender's care, diligence and skill to its advertising, before entering an agreement or taking a guarantee, and in all later dealings, and must meet the specific lender responsibilities: make reasonable inquiries before the agreement (and before a material change) so as to be satisfied that the credit suits what the borrower needs and wants and that the payments can be made without substantial hardship; help the borrower (and guarantor) decide on an informed basis and understand what the agreement fully entails, through advertising that meets the regulations and does not mislead, deceive or confuse, through plainly worded terms that are clear, concise and intelligible, and by explaining the key features; assist with informed decisions in subsequent dealings; deal with the borrower and their property reasonably and ethically, including during default, hardship and repossession; take care over credit-related insurance; and keep every legal obligation the lender owes the borrower under this Act and other enactments.

Maintained by Gerard Blokdyk

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